Beginning Retained Earnings should be $188,000. Calculate worksheets, journal entries and consol worksheet for Peerless.

Peerless acquires 75% of Special Foods outstanding CS for $427,500 on January 1, 20X1 The acquisition price was paid entirely in cash. The fair value of the noncontrolling interest is estimated at $142,500. The consideration given by Peerless plus the value of the NCI interest is $570,000. Specials' equity at the date of acquisition was CS, $260,000 and RE, $180,000. The difference between fair value and book value is $122,000. Book Value Fair Value Difference between FV and BV 7,000 20,000 50,000 60,000 57,000 80,000 Inventory Land Building Building Accum Deprec Net BV 600,000 (310,000) 290,000 290,000 400,000 360,000 497,000 70,000 97,000 Peerless Special 20x1 Separate Operating Income, Peerless Net Income, Special Foods Dividends 150,000 70,000 35,000 40,000 Assume that the entire inventory is sold during 20X1 The Buildings & Equipment have a remaining economic life of 10 years from the date of combination and Special uses Straight Line Depreciation Accumulated Depreciation at date of acquisition was $290,000. Management has determined that goodwill should be written down by $10,000. Yorul Book Value Calculations Original Book Value No nome -Divers Ending Book Value w Your Ownshot2016 Excess Value Differential Calculations Beginning Base - Changes Ending Belante CR Consolidated December 31, 20x1, Initial Year of Oameship, 75% Acquisition at More Than Book Value Consolidation Entries Peerless Special Dr Income Statement Sales 517,000 225,000 Less: COGS (250,000) (105,000) Less:Depreciation Experise (75,000) (20,000) Lees. Other Expenses 172,000) (30,000) Loos: Impalment Loss Income from Special Foods 34,500 Consoldated Net Income 181,500 70,000 NCI in Net Incomo Controlling Interest in NI 184,500 70,000 Statement of Retained Earnings Beginning Balance 389,750 188,000 Net Income 181,500 70,000 Loss:Dividonds Declerce (40,000) (35,000) Ending Balance 634,250 223,000 Balance Sheet Cash 148,500 140,000 Accounts Receivable 130.000 113,000 Inventory 220,000 95,000 Investment in Special Foods 435,750 Land 175,000 60,000 Buildings 900,000 600,000 Luss: Acoumulated Depreciation 525,000) (310,000) Goodwil Total Assete 1/481,250 688,000 Accounts Payable 200,000 100,000 Bonus Payable 250,000 105,000 Common Stock 500,000 200,000 Roteinod Earings 531.250 223,000 NCI in NA of Special Foods Total Liabilities & Equity 1/81,250 688,000 Journal Entries Debit Credit Peerless acquires 75% of Special Foods outstanding CS for $427,500 on January 1, 20X1 The acquisition price was paid entirely in cash. The fair value of the noncontrolling interest is estimated at $142,500. The consideration given by Peerless plus the value of the NCI interest is $570,000. Specials' equity at the date of acquisition was CS, $260,000 and RE, $180,000. The difference between fair value and book value is $122,000. Book Value Fair Value Difference between FV and BV 7,000 20,000 50,000 60,000 57,000 80,000 Inventory Land Building Building Accum Deprec Net BV 600,000 (310,000) 290,000 290,000 400,000 360,000 497,000 70,000 97,000 Peerless Special 20x1 Separate Operating Income, Peerless Net Income, Special Foods Dividends 150,000 70,000 35,000 40,000 Assume that the entire inventory is sold during 20X1 The Buildings & Equipment have a remaining economic life of 10 years from the date of combination and Special uses Straight Line Depreciation Accumulated Depreciation at date of acquisition was $290,000. Management has determined that goodwill should be written down by $10,000. Yorul Book Value Calculations Original Book Value No nome -Divers Ending Book Value w Your Ownshot2016 Excess Value Differential Calculations Beginning Base - Changes Ending Belante CR Consolidated December 31, 20x1, Initial Year of Oameship, 75% Acquisition at More Than Book Value Consolidation Entries Peerless Special Dr Income Statement Sales 517,000 225,000 Less: COGS (250,000) (105,000) Less:Depreciation Experise (75,000) (20,000) Lees. Other Expenses 172,000) (30,000) Loos: Impalment Loss Income from Special Foods 34,500 Consoldated Net Income 181,500 70,000 NCI in Net Incomo Controlling Interest in NI 184,500 70,000 Statement of Retained Earnings Beginning Balance 389,750 188,000 Net Income 181,500 70,000 Loss:Dividonds Declerce (40,000) (35,000) Ending Balance 634,250 223,000 Balance Sheet Cash 148,500 140,000 Accounts Receivable 130.000 113,000 Inventory 220,000 95,000 Investment in Special Foods 435,750 Land 175,000 60,000 Buildings 900,000 600,000 Luss: Acoumulated Depreciation 525,000) (310,000) Goodwil Total Assete 1/481,250 688,000 Accounts Payable 200,000 100,000 Bonus Payable 250,000 105,000 Common Stock 500,000 200,000 Roteinod Earings 531.250 223,000 NCI in NA of Special Foods Total Liabilities & Equity 1/81,250 688,000 Journal Entries Debit Credit